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The Reserve Bank of India (RBI) has announced the final redemption price for Sovereign Gold Bond (SGB) (SGB 2017-18 Series-V issue date is October 30, 2017). The final redemption date of this tranche shall be October 30, 2025, the RBI has said in a statement.Income Tax GuideIncome Tax Slabs FY 2025-26Income Tax Calculator 2025New Income Tax Bill 2025 Final redemption date of SGB 2017-18 Series-V, issue date October 30, 2017The RBI has said in a statement that in terms GOI notification F.No.4(25)-(W&M)/2017 dated October 06, 2017 (SGB 2017-18 Series-V-Issue date October 30, 2017) on the Sovereign Gold Bond Scheme, the Gold Bond shall be repayable on the expiration of eight years from the date of issue of the Gold Bonds. Accordingly, the final redemption date of the above tranche shall be October 30, 2025.SGBs deliver 217% return: RBI reveals premature redemption price and date for this sovereign gold bond series; check detailsThe final price of SGB 2017-18 Series-V SGB is based on the simple average of the closing price of gold for the three business days, i.e., October 27, 2025, October 28, 2025, and October 29, 2025, the RBI statement says.The final redemption price of SGB shall be based on a simple average of the closing price of gold of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA).What is the final redemption price for SGB 2017-18 Series-V, issue date October 30, 2017The final redemption price of SGB 2017-18 Series-V (issue date October 30, 2017, final redemption date October 30, 2025) will be Rs 11,992 per unit of SGB.The SGB was issued at Rs 2,971 per gram without discount and Rs 2,921 after a discount of Rs 50. It will yield an absolute simple return of nearly 311% on the date of the final redemption.The issue price of the SGB was Rs 50 per gram less than the nominal value to those investors who had applied online and the payment against the application was made through the digital mode.Sovereign Gold Bond (SGB) scheme detailsThe Sovereign Gold Bond (SGB) Scheme, managed by the RBI on behalf of the Government of India, offers a secure, paper/demat alternative to holding physical gold, eliminating storage and purity concerns while paying a 2.5% annual interest to the bond holders. The premature redemption of SGBs is allowed after 5 years from the date of the issue, on interest payout dates. The bonds are tradable, transferable, and can also be used as loan collateral. SGB interest rateThe interest on the SGB will apply from the date of the issue of the series and will be paid at a fixed rate of 2.50% per annum on the nominal value of the bond. The interest is paid half yearly and the last interest is paid along with the principal on maturity. Are there any risks in investing in SGBs?There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for, as per FAQs available on the RBI website.Is SGB still available?No, new subscriptions to new tranches of the Sovereign Gold Bond (SGB) scheme are no longer available.Can one trade these SGBs?SGBs are tradable on stock exchanges from the date to be notified by RBI. The bonds can also be sold and transferred as per provisions of Government Securities Act. However, the client would have to approach his, her broker for trading related requirements.
